Eastman Chemical Company (EMN) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 8% YoY to $2.385B; adjusted EBIT was $305M versus $210M, and adjusted diluted EPS was $1.84 versus $1.14.

• Higher selling prices and improved utilization supported results, while seasonal volume/mix declines and weaker automotive and consumer durables demand weighed on sales.

• DOE reinstated a $375M award for methanolysis expansion, while the E2P project is expected to strengthen olefin flexibility and earnings potential.

Financial highlights

• Q3 sales were $2.385B, up 8% YoY on 7% higher selling prices and 1% higher volume/mix; adjusted EBIT was $305M versus $210M.

• Q3 net earnings attributable were $252M and diluted EPS was $2.19; adjusted net earnings were $213M and adjusted diluted EPS was $1.84.

• Nine-month revenue was $7.075B versus $6.779B; adjusted EBIT was $825M versus $796M, and adjusted diluted EPS was $4.90 versus $4.66.

• Q3 gross profit was $532M versus $433M; adjusted EBIT benefited from specialty pricing, improved utilization, lower planned maintenance and cost reductions.

Outlook and guidance

• FY26 adjusted diluted EPS guidance is $6.00–$6.20; full-year operating cash flow is expected to be ~$850M.

• FY26 volume/mix growth is expected to be ~3%; cost savings target is $125M–$150M net of inflation, with a ~$50M FX benefit.

• Operating cash flow outlook was reduced from $900M to $850M amid inflation-driven working-capital pressure; ~$250M working-capital release is expected in Q4.

• 2027 volume growth is expected in Advanced Materials, Additives & Functional Products, and Fibers; Chemical Intermediates volumes are expected to be similar to 2026.

• 2027 operating cash flow is expected to exceed $850M if conditions normalize and inflationary headwinds do not return.